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The difference between the business model, framework and architecture

The difference between the business model, framework and WHAT'S YOUR BQ?
architecture
By Huss Sadri

An interesting question from Marsha Campbell, HR Officer at National Commercial Bank

0
Jamaica Ltd landed in my inbox the other day:
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I noticed on your website you explained the difference between a model and a
business plan. I would like to know what is the difference between the model, framework and
architecture. Most sites that attempt to answer this question tend to be IT specific. Would you
be able to shed some light?

Our business model research specialist, Huss Sadri, came up with the following answer.

A business model describes the rationale of how an organization creates, delivers, and captures
value (economic, social, or other forms of value). The process of business model construction is
part of business strategy and the design of organizational structures. Thus the essence of a BUY THE BOOK
business model is that it defines the manner by which the business enterprise delivers value to
customers, entices customers to pay for value, and converts those payments to profit: it thus
reflects management’s hypothesis about what customers want, how they want it, and how an
enterprise can organize to best meet those needs, get paid for doing so, and make a profit.

Ultimately, the business model of a company is a simplified representation of its business logic. It
describes what a company offers its customers, how it reaches them and relates to them, through
which resources, activities and partners it achieves this and finally, how it earns money. The
business model is usually distinguished from the business process model and the organization
model.

A business model can be described by looking at a set of building blocks such as for example: We are proud to announce our latest book
release; please click the button below and
Market Attractiveness of the Business purchase a copy...
Value proposition
Revenue Distribution
Sales Performance Buy The Book
Competitive Advantage
Key resources
Cost structure LATEST ARTICLES
Pitfalls & Risks
Exist Model Amazon’s Halo Effect
Customer Value
Business architecture is a part of an enterprise architecture related to corporate business, and the
documents and diagrams that describe that architectural structure of business. Business
Your Mission Matters: How
Architecture articulates the functional structure of an enterprise in terms of its business services and Kiva Lost Its Way
business information. The key views of the enterprise within the business architecture context are:

Infographic: 9 Steps to an
Business Strategy view: captures the strategic goals that drive an organization forward. The goals Operations Plan
may be decomposed into various tactical approaches for achieving these goals and for providing
traceability through the organization. 7 Excuses Business Owners
Business Capabilities view: describes the business functional abilities expressed via business Don’t Have an Operations
services of an enterprise and the sections of the organization that would be able performing those Plan
functions.
Business Hacks to Make
Business Knowledge view: establishes the shared semantics (e.g., customer, order, and supplier)
Creating an Operations Plan
within an organization and relationships between those semantics (e.g., customer name, order date, Simple
supplier name).
Business Operational view: defines the set of strategic, core and support operational structures that
transcend functional and organizational boundaries. It also sets the boundary of the enterprise by CATEGORIES
identifying and describing external entities such as customers, suppliers, and external systems that
interact with the business. The operational structures describe which resources and controls are
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involved.
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Organizational view: captures the relationships among roles, capabilities and business units, the
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decomposition of those business units into subunits, and the internal or external management of
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those units.
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Business frameworks Operationally, the business framework generally describes the corporate
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organization or management structure or may generally outline company policies or an organization
Business Ownership (21)
might develop a framework to achieve a particular goal or An innovations framework may outline
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policies, procedures and management changes the company will use to achieve innovation and
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growth etc.
Offering (3)
Effective leaders provide a business framework in which people and business partners can work Private Companies (17)
efficiently and effectively, both individually and collectively, and succeed for mutual benefit. A Public Companies (47)
framework comprises: Success Stories (19)
Sustainability (2)
goals and strategies, Uncategorized (5)
policies, Web Business Models (23)
organization and culture,
relationship contracts and arrangements,
business processes,
roles,
tools,
systems,
objectives and
Measures and incentives.
A good business framework creates an organizational environment in which people think and act for
themselves, yet collaborate to achieve common goals and objectives.

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